Comparing Hub Group (NASDAQ:HUBG) & ZTO Express (Cayman) (NYSE:ZTO)

Hub Group (NASDAQ:HUBG – Get Free Report) and ZTO Express (Cayman) (NYSE:ZTO – Get Free Report) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Risk & Volatility

Hub Group has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, ZTO Express (Cayman) has a beta of -0.22, indicating that its stock price is 122% less volatile than the S&P 500.

Get Hub Group alerts:

Profitability

This table compares Hub Group and ZTO Express (Cayman)’s net margins, return on equity and return on assets.

Institutional & Insider Ownership

46.8% of Hub Group shares are owned by institutional investors. Comparatively, 41.7% of ZTO Express (Cayman) shares are owned by institutional investors. 3.5% of Hub Group shares are owned by company insiders. Comparatively, 41.3% of ZTO Express (Cayman) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Hub Group pays an annual dividend of $0.50 per share and has a dividend yield of 1.1%. ZTO Express (Cayman) pays an annual dividend of $0.76 per share and has a dividend yield of 3.3%. Hub Group pays out 28.9% of its earnings in the form of a dividend. ZTO Express (Cayman) pays out 46.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Hub Group and ZTO Express (Cayman)”s revenue, earnings per share and valuation.

ZTO Express (Cayman) has higher revenue and earnings than Hub Group. ZTO Express (Cayman) is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Hub Group and ZTO Express (Cayman), as provided by MarketBeat.com.

Hub Group presently has a consensus target price of $43.14, indicating a potential downside of 6.98%. ZTO Express (Cayman) has a consensus target price of $27.03, indicating a potential upside of 18.39%. Given ZTO Express (Cayman)’s stronger consensus rating and higher probable upside, analysts clearly believe ZTO Express (Cayman) is more favorable than Hub Group.

Summary

ZTO Express (Cayman) beats Hub Group on 10 of the 17 factors compared between the two stocks.

About Hub Group

(Get Free Report)

Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 2,300 tractors, 460 independent owner-operators, and 4,300 trailers to its customers, as well as the management and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2023, it owned approximately 50,000 dry, 53-foot containers, as well as 900 refrigerated and 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.

About ZTO Express (Cayman)

(Get Free Report)

ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.

Receive News & Ratings for Hub Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hub Group and related companies with MarketBeat.com's FREE daily email newsletter.